singlemalt Posted January 31, 2012 Share Posted January 31, 2012 First thing this morning I logged into my online banking. One transaction I noticed was £67 for one of the big four supermarkets. I thought I can't remember spending that amount?? I then recalled that I did recently spend £17 and also asked for £50 cash-back (it saves messing around at the atm). This got me thinking (btw someone feel free to flame me if I'm being a numpty somewhere in this). Do such transactions not boost the turnover figures for stores that offer cashback? Technically I've only spent £17 but their turnover is now £67. I always thought cash-back was a convenmient way for stores to lessen their costs for cash handling by the security couriers but this has got me thinking? Is there a Business Analyst or someone in retail who can clarify? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 31, 2012 Share Posted January 31, 2012 Will they get a fee from the bank for doing the cashback? Quote Link to comment Share on other sites More sharing options...
wolfe tone Posted January 31, 2012 Share Posted January 31, 2012 First thing this morning I logged into my online banking. One transaction I noticed was £67 for one of the big four supermarkets. I thought I can't remember spending that amount?? I then recalled that I did recently spend £17 and also asked for £50 cash-back (it saves messing around at the atm). This got me thinking (btw someone feel free to flame me if I'm being a numpty somewhere in this). Do such transactions not boost the turnover figures for stores that offer cashback? Technically I've only spent £17 but their turnover is now £67. I always thought cash-back was a convenmient way for stores to lessen their costs for cash handling by the security couriers but this has got me thinking? Is there a Business Analyst or someone in retail who can clarify? No,you spent £17 and got £50 "change" The Fifty quid does not go onto the turnover figure! Quote Link to comment Share on other sites More sharing options...
wolfe tone Posted January 31, 2012 Share Posted January 31, 2012 Will they get a fee from the bank for doing the cashback? The retailer pays a fee for the privilege of having a debit/credit card terminal,the size of that fee depends on the stores turnover. You also pay for that fee-it is added to to the retail price!! Quote Link to comment Share on other sites More sharing options...
koala_bear Posted January 31, 2012 Share Posted January 31, 2012 (edited) Stores have to pay to have higher denomination notes collected (G4S etc) so if they can recycle some of the notes back to customers it reduces the frequency of the collection visits and means there is less cash in the till and safe on average. Edited January 31, 2012 by koala_bear Quote Link to comment Share on other sites More sharing options...
Fishman Posted January 31, 2012 Share Posted January 31, 2012 I don't know what sort of rate the big retailers have to pay their bankers to pay in cash, but for SME's it's a big bone of contention. I know of firms that are charged 60p per £100 for paying cash into their own account. Scandalous. They do everything to reduce this unfair charge including paying suppliers in cash, offering cash-back to customers etc. Banks are squeezing every business for every pound they can. Quote Link to comment Share on other sites More sharing options...
long time lurking Posted January 31, 2012 Share Posted January 31, 2012 I don't know what sort of rate the big retailers have to pay their bankers to pay in cash, but for SME's it's a big bone of contention. I know of firms that are charged 60p per £100 for paying cash into their own account. Scandalous. They do everything to reduce this unfair charge including paying suppliers in cash, offering cash-back to customers etc. Banks are squeezing every business for every pound they can. Every 100 over 3k a month is 50p for me and the twa"t`s wat payment if I want change (coin`s) of them Quote Link to comment Share on other sites More sharing options...
RJG18 Posted January 31, 2012 Share Posted January 31, 2012 I had a small business account with HBOS 2004-2007 which charged £4 per £100 to bank cash. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted January 31, 2012 Share Posted January 31, 2012 I cant see a sale in the accounts! Maybe they sell cash at a premium ? I buy all my cash from waitrose. Its crisper. Quote Link to comment Share on other sites More sharing options...
jonb Posted January 31, 2012 Share Posted January 31, 2012 Will they get a fee from the bank for doing the cashback? No, they pay a fee, but it is a cheaper way to bank the cash in their till than getting G4S to take it there. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.